Question : 81) To maximize profits, firms hire labor as long as A) : 1228308

81) To maximize profits, firms hire labor as long as

A) each additional hour hired produces more additional output than the real wage rate.

B) the total hours hired produces more additional output than the real wage rate.

C) each additional hour hired produces more additional output than the nominal wage rate.

D) the quantity of labor supplied increases as the real wage rate increases.

E) workers continue to supply labor to the firm.

82) An increase in the wage rate ________ the quantity of labor supplied and ________ the quantity of labor demanded.

A) increases; increases

B) increases; decreases

C) decreases; increases

D) decreases; decreases

E) does not change; decreases

83) For a household, the opportunity cost of not working is the

A) nominal wage rate.

B) real wage rate.

C) cost of living.

D) price level.

E) demand for labor.

84) Which of the following statements is (are) true?

i.As the real wage rate increases, the household’s income decreases, which influences people to work more hours.

ii.As the real wage rate increases, the quantity of labor demanded increases.

iii.As the real wage rate increases, the opportunity cost of not working increases.

A) i only

B) ii only

C) iii only

D) i and iii

E) i, ii, and iii

85) As demonstrated by the labor supply schedule, the quantity of labor supplied depends on

A) the nominal wage.

B) the amount of labor that firms want to hire.

C) the real wage.

D) the value of the dollar.

E) workers’ productivity.

86) The supply of labor is defined as the relationship between the real wage rate and the

A) quantity of labor supplied by firms.

B) amount of jobs supplied by firms.

C) quantity of labor supplied by households.

D) amount of jobs supplied by households.

E) equilibrium quantity of employment.

87) Which of the following statements is true?

A) According to the labor supply curve, as the real wage rises, employers are willing to provide more jobs.

B) According to the labor supply curve, as the real wage rises, workers are willing to provide more hours of labor.

C) According to the labor supply curve, as the real wage rises, employers are willing to provide fewer jobs.

D) According to the labor supply curve, as the real wage rises, workers are willing to provide fewer hours of labor.

E) According to the labor supply curve, as the real wage rises, more workers leave the labor force.

88) Households increase the quantity of labor supplied when the

A) real wage rate rises because the opportunity cost of not working falls.

B) nominal wage rate rises because the real wage rate must also rise.

C) real wage rate rises because the opportunity cost of not working rises.

D) nominal wage rate falls because the opportunity cost of not working rises.

E) income tax rises because an increase in the income tax increases the demand for labor.

89) Households increase the quantity of labor supplied when

A) the real wage rate increases.

B) the real wage rate decreases.

C) job opportunities increase.

D) the nominal wage decreases and the price level rises.

E) income taxes increase.

90) Holding all other influences constant, the quantity of labor supplied in a given time period depends

A) inversely on the real wage rate so that a higher real wage decreases the quantity of labor supplied.

B) directly on the real wage rate so that a higher real wage increases the quantity of labor supplied.

C) inversely on the quantity of labor demanded.

D) on the money wage rate not the real wage rate.

E) directly on the quantity of labor demanded.